London – Canadian Prime Minister Mark Carney has thrown his weight behind a new global defense bank intended to help allies rearm, but other major economies have yet to commit just weeks before prospective members are due to sign up. The Defence, Security and Resilience Bank (DSRB) has been seeking to raise around €100 billion ($116 billion) and use the money to lend at low cost to governments and contractors for defense projects. It will also offer guarantees for lenders financing smaller firms seen as riskier borrowers.
Alongside Canada, where the DSRB will be based, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine have pledged their support. Two officials from countries involved in the project said the DSRB had secured about €5 billion in commitments by August. It is aiming for around €20 billion in paid-in capital and a further €80 billion it can tap when needed, one of them said.
But Germany, Britain and other G7 countries have so far declined to join, raising questions over whether the DSRB can achieve the triple-A credit rating it wants to help secure the lowest funding costs.
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